Indian ADRs gains $3.56 bn in one week

Last Updated: Sunday, October 4, 2009 - 11:32

New York: Indian stocks trading on American
bourses gained nearly USD 4 billion last week, with IT major
Wipro and private sector lender ICICI Bank pocketing most of
the gains.

For the week ended October 2, Indian entities listed on
the New York Stock Exchange and Nasdaq added USD 3.56 billion
to their market-cap, with Wipro and ICICI Bank together
contributing USD 3.15 billion.

The valuation of Wipro grew by USD 1.66 billion, while
that of ICICI Bank rose by USD 1.49 billion.

However, total gain was offset by loss of handful of
companies including auto maker Tata Motors and pharma major Dr
Reddy`s Laboratories.

Among the 16 companies trading as American Depository
Receipts (ADRs), another major gainers was IT bellwether
Infosys Technologies whose market capitalisation jumped by USD
692 million.

During the week, Tata Motors was the biggest loser. The
company witnessed a value erosion of USD 583 million.

ADRs are bought and sold on American bourses just like
stocks and are issued by banks or brokerage firms.

Meanwhile, copper producer Sterlite Industries saw an
increase of USD 397 million in its market capitalisation.

On the other hand, Dr Reddy`s Laboratories saw its market
capitalisation decline by USD 270 million.

Apart from Wipro and ICICI Bank, Infosys and Sterlite
Industries, private sector lender HDFC Bank too witnessed a
significant increase to its valuation. The lender`s market cap
climbed by USD 128 million.

Among other ADR gainers-- IT major Patni Computer
Systems, BPO companies-- WNS Holdings and EXLService Holdings,
telecom majors--Mahanagar Telephone Nigam and Tata
Communications market capitalisation increased in the range of
USD 10 million to USD 35 million.

The market capitalisation of outsourcing company Genpact
fell by USD 50 million, IT firm Mahindra Satyam ascended (USD
13 million), internet firms--Reddif.com (USD 9 million) and
Sify Technologies (USD 4 million).

The unemployment rate in the US soared to a 26-year high
of 9.8 percent in September as jobs continued to evaporate
even as the recession-hit economy is slowly showing signs of
stabilisation.

On Friday the US markets ended in the red, with Dow Jones
Industrial Average settling down by 21.61 points at 9,487.67
and S&P 500 fell by 4.64 points to 1,025.21. Besides, tech
heavy Nasdaq was down 9.37 points at 2,048.11.

Bureau Report



First Published: Sunday, October 4, 2009 - 11:32

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